8.009.00 (b) may exercise the power so as to add a new activity to those to which the permission relates or to widen the description of a regulated activity to which the permission relates, only with the consent of the FCA.5.006.00 (6) Without prejudice to the generality of subsections Single_Level_Xrefmf.054j-1466614: SubSection: (1) Either regulator may exercise its power under this section in relation to a PRA-authorised person ("A") if it appears to the regulator that\xd1 Yes 1327667808 903000(1) to Single_Level_Xrefmf.054j-1466660: SubSection: (3) The PRA\qs power under this section is the power, in the case of a PRA-authorised person, to vary the Part 4A permission in any of the ways mentioned in section 55I(1) or to cancel it.Yes 1327667808 903000(3), a regulator may, in relation to an authorised person who is an investment firm, exercise its power under this section to cancel the Part 4A permission if it appears to it that any of the conditions in section Clause_Single_Level_Xrefmf.054j-1478604: Clause: 40K ClauseYes 1327667808 90300055K is met.5.006.00 (7) If, as a result of a variation of a Part 4A permission under this section, there are no longer any regulated activities for which the authorised person concerned has permission, the regulator responsible for the variation must, once it is satisfied that it is no longer necessary to keep the permission in force, cancel it.5.006.00 (8) Before cancelling under subsection Single_Level_Xrefmf.054j-1466689: SubSection: (8) If, as a result of a variation of a Part 4A permission under this section, there are no longer any regulated activities for which the authorised person concerned has permission, the regulator responsible for the variation must, once it is satisfied that Yes 1327667808 903000(7) a Part 4A permission which relates to a person who (before the variation) was a PRA-authorised person, the regulator must consult the other regulator.5.006.00 (9) The power of either regulator to vary a Part 4A permission under this section extends to including in the permission as varied any provision that could be included if a fresh permission were being given in response to an application to that regulator under section Clause_Single_Level_Xrefmf.054j-1112605: Clause: 55A ClauseYes 1327667808 90300055A.5.006.00 (10) Consent given by one regulator for the purpose of subsection SubSection-Paramf.054j-1599676: Para: (b) in the case of a PRA-authorised person, may exercise the power so as to add a new activity to those to which the permission relates or to widen the description of a regulated activity to which the permission relates, only with the consent of the PRA.Yes 1327667808 903000(4)(b) or SubSection-Paramf.054j-1473192: Para: (b) may exercise the power so as to add a new activity to those to which the permission relates or to widen the description of a regulated activity to which the permission relates, only with the consent of the FCA.Yes 1327667808 903000(5)(b) may be conditional on the manner in which the other regulator exercises its powers under section Clause_Single_Level_Xrefmf.054j-1394879: Clause: 55E ClauseYes 1327667808 91800055E(4) and (5) or Clause_Single_Level_Xrefmf.054j-1401979: Clause: 55F ClauseYes 1327667808 91800055F(3) and (4) (as a result of subsection Single_Level_Xrefmf.054j-1466694: SubSection: (10) The power of either regulator to vary a Part 4A permission under this section extends to including in the permission as varied any provision that could be included if a fresh permission were being given in response to an application under section 55A.Yes 1327667808 918000(9)).5.006.00 (11) The power of the FCA or the PRA under this section is referred to in this Part as its own-initiative variation power.3.005.50 55K Investment firms: particular conditions that enable cancellation5.006.00 (1) The conditions referred to in section Clause_Single_Level_Xrefmf.054j-1465558: Clause: 40J ClauseYes 1327667808 91800055J(6) are as follows—8.009.00 (a) that the firm has failed, during a period of at least 6 months, to carry on a regulated activity which is an investment service or activity for which it has a Part 4A permission;8.009.00 (b) that the firm obtained the Part 4A permission by making a false statement or by other irregular means;8.009.00 (c) that the firm no longer satisfies the requirements for authorisation pursuant to Chapter I of Title II of the markets in financial instruments directive, or pursuant to or contained in any EU legislation made under that Chapter, in relation to a regulated activity which is an investment service or activity for which it has a Part 4A permission;8.009.00 (d) that the firm has seriously and systematically infringed the operating conditions pursuant to Chapter II of Title II of the markets in financial instruments directive, or pursuant to or contained in any EU legislation made under that Chapter, in relation to a regulated activity which is an investment service or activity for which it has a Part 4A permission.5.006.00 (2) For the purposes of this section a regulated activity is an investment service or activity if it falls within the definition of “investment services and activities” in section 417(1).

Imposition and variation of requirements3.005.50 55L Imposition of requirements by FCA5.006.00 (1) Where a person has applied (whether to the FCA or the PRA) for a Part 4A permission or the variation of a Part 4A permission, the FCA may impose on that person such requirements, taking effect on or after the giving or variation of the permission, as the FCA considers appropriate.5.006.00 (2) The FCA may exercise its power under subsection Single_Level_Xrefmf.054j-1533071: SubSection: (4) The FCA\qs power under this subsection is a power\xd1 Yes 1327667808 918000(3) in relation to an authorised person with a Part 4A permission (whether given by it or by the PRA) (“A”) if it appears to the FCA that—8.009.00 (a) A is failing, or is likely to fail, to satisfy the threshold conditions for which the FCA is responsible,8.009.00 (b) A has failed, during a period of at least 12 months, to carry on a regulated activity to which the Part 4A permission relates, or8.009.00 (c) it is desirable to exercise the power in order to advance one or more of the FCA’s operational objectives.5.006.00 (3) The FCA’s power under this subsection is a power—8.009.00 (a) to impose a new requirement,8.009.00 (b) to vary a requirement imposed by the FCA under this section, or8.009.00 (c) to cancel such a requirement.5.006.00 (4) The FCA’s power under subsection Single_Level_Xrefmf.054j-1533071: SubSection: (4) The FCA\qs power under this subsection is a power\xd1 Yes 1327667808 918000(3) is referred to in this Part as its own-initiative requirement power.5.006.00 (5) The FCA may, on the application of an authorised person with a Part 4A permission—8.009.00 (a) impose a new requirement,8.009.00 (b) vary a requirement imposed by the FCA under this section, or8.009.00 (c) cancel such a requirement.5.006.00 (6) The FCA must consult the PRA before imposing or varying a requirement which relates to—8.009.00 (a) a person who is, or will on the granting of an application for Part 4A permission be, a PRA-authorised person, or8.009.00 (b) a person who is a member of a group which includes a PRA-authorised person.3.005.50 55M Imposition of requirements by PRA5.006.00 (1) Where—8.009.00 (a) a person has applied for a Part 4A permission in relation to activities which consist of or include a PRA-regulated activity, 8.009.00 (b) a PRA-authorised person has applied for a Part 4A permission or the variation of a Part 4A permission, or8.009.00 (c) an authorised person other than a PRA-authorised person has applied for a Part 4A permission to be varied by adding to the regulated activities to which it relates one or more regulated activities which include a PRA-regulated activity,5.006.00the PRA may impose on that person such requirements, taking effect on or after the giving or variation of the permission, as the PRA considers appropriate.

5.006.00 (2) The PRA may exercise its power under subsection Single_Level_Xrefmf.054j-1536323: SubSection: (4) The PRA\qs power under this subsection is a power\xd1 Yes 1327667808 918000(3) in relation to a PRA-authorised person with a Part 4A permission (“P”) if it appears to the PRA that—8.009.00 (a) P is failing, or is likely to fail, to satisfy the threshold conditions for which the PRA is responsible,8.009.00 (b) P has failed, during a period of at least 12 months, to carry on a regulated activity to which the Part 4A permission relates, or8.009.00 (c) it is desirable to exercise the power in order to advance any of the PRA’s objectives.5.006.00 (3) The PRA’s power under this subsection is a power—8.009.00 (a) to impose a new requirement,8.009.00 (b) to vary a requirement imposed by the PRA under this section, or8.009.00 (c) to cancel such a requirement.5.006.00 (4) The PRA’s power under subsection Single_Level_Xrefmf.054j-1536323: SubSection: (4) The PRA\qs power under this subsection is a power\xd1 Yes 1327667808 918000(3) is referred to in this Part as its own-initiative requirement power.5.006.00 (5) The PRA may, on the application of a PRA-authorised person with a Part 4A permission—8.009.00 (a) impose a new requirement,8.009.00 (b) vary a requirement imposed by the PRA under this section, or8.009.00 (c) cancel such a requirement.5.006.00 (6) The PRA must consult the FCA before imposing or varying a requirement.3.005.50 55N Requirements under section Clause_Single_Level_Xrefmf.054j-1496971: Clause: 40L ClauseYes 1327667808 91800055L or Clause_Single_Level_Xrefmf.054j-1519906: Clause: 40M ClauseYes 1327667808 91800055M: further provisions5.006.00 (1) A requirement may, in particular, be imposed—8.009.00 (a) so as to require the person concerned to take specified action, or8.009.00 (b) so as to require the person concerned to refrain from taking specified action.5.006.00 (2) A requirement may extend to activities which are not regulated activities.5.006.00 (3) A requirement may be imposed by reference to the person’s relationship with—8.009.00 (a) the person’s group, or8.009.00 (b) other members of the person’s group.5.006.00 (4) A requirement expires at the end of such period as the regulator imposing it may specify, but this does not affect the regulator’s power to impose a new requirement.5.006.00 (5) A requirement may refer to the past conduct of the person concerned (for example, by requiring the person concerned to review or take remedial action in respect of past conduct).5.006.00 (6) In this section “requirement” means a requirement imposed under section Clause_Single_Level_Xrefmf.054j-1496971: Clause: 40L ClauseYes 1327667808 91800055L or Clause_Single_Level_Xrefmf.054j-1519906: Clause: 40M ClauseYes 1327667808 91800055M.3.005.50 55O Imposition of requirements on acquisition of control5.006.00 (1) This section applies if it appears to the appropriate regulator that—

8.009.00 (a) a person has acquired control over a UK authorised person who has a Part 4A permission, but8.009.00 (b) there are no grounds for exercising its own-initiative requirement power.5.006.00 (2) If it appears to the appropriate regulator that the likely effect of the acquisition of control on the UK authorised person, or on any of its activities, is uncertain, the appropriate regulator may—8.009.00 (a) impose on the UK authorised person a requirement that could be imposed by that regulator under section Clause_Single_Level_Xrefmf.054j-1496971: Clause: 40L ClauseYes 1327667808 91800055L or Clause_Single_Level_Xrefmf.054j-1519906: Clause: 40M ClauseYes 1327667808 91800055M (as the case may be) on the giving of permission, or8.009.00 (b) vary a requirement imposed by that regulator under that section on the UK authorised person.5.006.00 (3) “The appropriate regulator” means—8.009.00 (a) in a case where the UK authorised person is a PRA-authorised person, the FCA or the PRA;8.009.00 (b) in any other case, the FCA.5.006.00 (4) This section does not affect any duty of the appropriate regulator to consult or obtain the consent of the other regulator in connection with the imposition of the requirement.5.006.00 (5) Any reference to a person having acquired control is to be read in accordance with Part 12.3.005.50 55P Prohibitions and restrictions5.006.00 (1) This section applies if—8.009.00 (a) on a person being given a Part 4A permission, either regulator imposes an assets requirement on that person, 8.009.00 (b) an assets requirement is imposed on an authorised person, or8.009.00 (c) an assets requirement previously imposed on such a person is varied.5.006.00 (2) A person on whom an assets requirement is imposed is referred to in this section as “A”.5.006.00 (3) The “appropriate regulator” is the regulator which imposed the requirement.5.006.00 (4) “Assets requirement” means a requirement under section Clause_Single_Level_Xrefmf.054j-1496971: Clause: 40L ClauseYes 1327667808 91800055L or Clause_Single_Level_Xrefmf.054j-1519906: Clause: 40M ClauseYes 1327667808 91800055M—8.009.00 (a) prohibiting the disposal of, or other dealing with, any of A’s assets (whether in the United Kingdom or elsewhere) or restricting such disposals or dealings, or8.009.00 (b) that all or any of A’s assets, or all or any assets belonging to consumers but held by A or to A’s order, must be transferred to and held by a trustee approved by the appropriate regulator.5.006.00 (5) If the appropriate regulator—8.009.00 (a) imposes a requirement of the kind mentioned in subsection SubSection-Paramf.054j-1183562: Para: (a) prohibiting the disposal of, or other dealing withn, any of A\qs assets (whether in the United Kingdom or elsewhere) or restricting such disposals or dealings, orYes 1327667808 918000(4)(a), and8.009.00 (b) gives notice of the requirement to any institution with whom A keeps an account,5.006.00the notice has the effects mentioned in subsection Single_Level_Xrefmf.054j-1184901: SubSection: (6) Those effects are that\xd1 Yes 1327667808 934000(6).5.006.00 (6) Those effects are that—

8.009.00 (a) the institution does not act in breach of any contract with A if, having been instructed by A (or on A’s behalf) to transfer any sum or otherwise make any payment out of A’s account, it refuses to do so in the reasonably held belief that complying with the instruction would be incompatible with the requirement, and8.009.00 (b) if the institution complies with such an instruction, it is liable to pay to the appropriate regulator an amount equal to the amount transferred from, or otherwise paid out of, A’s account in contravention of the requirement.5.006.00 (7) If the appropriate regulator imposes a requirement of the kind mentioned in subsection SubSection-Paramf.054j-1183569: Para: (b) that all or any of A\qs assets, or all or any assets belonging to consumers but held by A or to A\qs order, must be transferred to and held by a trustee approved by the relevant authority.Yes 1327667808 934000(4)(b), no assets held by a person as trustee in accordance with the requirement may, while the requirement is in force, be released or dealt with except with the consent of the appropriate regulator.5.006.00 (8) If, while a requirement of the kind mentioned in subsection SubSection-Paramf.054j-1183569: Para: (b) that all or any of A\qs assets, or all or any assets belonging to consumers but held by A or to A\qs order, must be transferred to and held by a trustee approved by the relevant authority.Yes 1327667808 934000(4)(b) is in force, A creates a charge over any assets of A held in accordance with the requirement, the charge is (to the extent that it confers security over the assets) void against the liquidator and any of A’s creditors.5.006.00 (9) Assets held by a person as trustee (“T”) are to be taken to be held by T in accordance with any requirement mentioned in subsection SubSection-Paramf.054j-1183569: Para: (b) that all or any of A\qs assets, or all or any assets belonging to consumers but held by A or to A\qs order, must be transferred to and held by a trustee approved by the relevant authority.Yes 1327667808 934000(4)(b)only if—8.009.00 (a) A has given T written notice that those assets are to be held by T in accordance with the requirement, or8.009.00 (b) they are assets into which assets to which paragraph Single_Level_Xrefmf.054j-1186316: Para: (a) A has given written notice that those assets are to be held by T in accordance with the requirement, orYes 1327667808 934000(a) applies have been transposed by T on the instructions of A.5.006.00 (10) A person who contravenes subsection Single_Level_Xrefmf.054j-1184936: SubSection: (7) If the appropriate authority imposes a requirement of the kind mentioned in subsection (4)(b), no assets held by a person as trustee in accordance with the requirement may, while the requirement is in force, be released or dealt with except with the consYes 1327667808 934000(7) is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.5.006.00 (11) “Charge” includes a mortgage (or in Scotland a security over property).5.006.00 (12) Subsections Single_Level_Xrefmf.054j-1184936: SubSection: (7) If the appropriate authority imposes a requirement of the kind mentioned in subsection (4)(b), no assets held by a person as trustee in accordance with the requirement may, while the requirement is in force, be released or dealt with except with the consYes 1327667808 934000(7) and Single_Level_Xrefmf.054j-1185658: SubSection: (9) Assets held by a person as trustee ("T") are to be taken to be held by T in accordance with any requirement mentioned in subsection (4)(b) only if\xd1 Yes 1327667808 934000(9) do not affect any equitable interest or remedy in favour of a person who is a beneficiary of a trust as a result of a requirement of the kind mentioned in subsection SubSection-Paramf.054j-1183569: Para: (b) that all or any of A\qs assets, or all or any assets belonging to consumers but held by A or to A\qs order, must be transferred to and held by a trustee approved by the relevant authority.Yes 1327667808 934000(4)(b).Exercise of power in support of overseas regulator3.005.50 55Q Exercise of power in support of overseas regulator5.006.00 (1) Either UK regulator’s own-initiative powers may be exercised in respect of an authorised person at the request of, or for the purpose of assisting, an overseas regulator of a prescribed kind.5.006.00 (2) Subsection Single_Level_Xrefmf.054j-1159686: SubSection: (1) The own-initiative power of either UK regulator may be exercised in respect of an authorised person at the request of, or for the purpose of assisting, a regulator who is\xd1 Yes 1327667808 934000(1) applies whether or not the UK regulator has powers which are exercisable in relation to the authorised person by virtue of any provision of Part 13.5.006.00 (3) Subsection Single_Level_Xrefmf.054j-1159686: SubSection: (1) The own-initiative power of either UK regulator may be exercised in respect of an authorised person at the request of, or for the purpose of assisting, a regulator who is\xd1 Yes 1327667808 934000(1) does not affect any duty of one UK regulator to consult or obtain the consent of the other UK regulator in relation to the exercise of its own-initiative powers.5.006.00 (4) If a request to a UK regulator for the exercise of its own-initiative powers has been made by an overseas regulator who is—

8.009.00 (a) of a prescribed kind, and8.009.00 (b) acting in pursuance of provisions of a prescribed kind,5.006.00the UK regulator must, in deciding whether or not to exercise those powers in response to the request, consider whether it is necessary to do so in order to comply with an EU obligation.5.006.00 (5) In deciding whether or not to do so, in any case in which the UK regulator does not consider that the exercise of its own-initiative powers is necessary in order to comply with an EU obligation, it may take into account in particular—8.009.00 (a) whether in the country or territory of the overseas regulator concerned, corresponding assistance would be given to a United Kingdom regulatory authority;8.009.00 (b) whether the case concerns the breach of a law, or other requirement, which has no close parallel in the United Kingdom or involves the assertion of a jurisdiction not recognised by the United Kingdom;8.009.00 (c) the seriousness of the case and its importance to persons in the United Kingdom;8.009.00 (d) whether it is otherwise appropriate in the public interest to give the assistance sought.5.006.00 (6) The UK regulator may decide not to exercise its own-initiative powers, in response to a request, unless the overseas regulator concerned undertakes to make such contribution towards the cost of their exercise as the UK regulator considers appropriate.5.006.00 (7) Subsection Single_Level_Xrefmf.054j-1165676: SubSection: (5) The UK regulator may decide not to exercise its own-initiative power, in response to a request, unless the regulator concerned undertakes to make such contribution towards the cost of its exercise as the Authority considers appropriate.\x0d Yes 1327667808 934000(6) does not apply if the UK regulator decides that it is necessary for it to exercise its own-initiative powers in order to comply with an EU obligation.5.006.00 (8) In subsection Single_Level_Xrefmf.054j-1165676: SubSection: (5) The UK regulator may decide not to exercise its own-initiative power, in response to a request, unless the regulator concerned undertakes to make such contribution towards the cost of its exercise as the Authority considers appropriate.\x0d Yes 1327667808 934000(6) “request” means a request of a kind mentioned in subsection Single_Level_Xrefmf.054j-1159686: SubSection: (1) The own-initiative power of a UK regulator may be exercised in respect of an authorised person at the request of, or for the purpose of assisting, a regulator who is\xd1 Yes 1327667808 934000(1).5.006.00 (9) In this section—8.009.00 (a) “UK regulator” means the FCA or the PRA;8.009.00 (b) “overseas regulator” means a regulator outside the United Kingdom;8.009.00 (c) “own-initiative powers”, in relation to the FCA or the PRA, means its own-initiative variation power and its own-initiative requirement power.Connected persons3.005.50 55R Persons connected with an applicant5.006.00 (1) In considering—8.009.00 (a) an application for a Part 4A permission, 8.009.00 (b) whether to vary or cancel a Part 4A permission,8.009.00 (c) whether to impose or vary a requirement under this Part, or8.009.00 (d) whether to give any consent required by any provision of this Part,5.006.00the regulator concerned may have regard to any person appearing to it to be, or likely to be, in a relationship with the applicant or a person given permission which is relevant.

5.006.00 (2) Before—8.009.00 (a) giving permission in response to an application under section Clause_Single_Level_Xrefmf.054j-1112605: Clause: 55A ClauseYes 1327667808 93400055A made by a person who is connected with an EEA firm (other than an EEA firm falling within paragraph 5(e) of Schedule 3 (insurance and reinsurance intermediaries)), or8.009.00 (b) cancelling or varying a Part 4A permission given to such a person,5.006.00the regulator concerned must in prescribed circumstances consult the firm’s home state regulator.5.006.00 (3) A person (“A”) is connected with an EEA firm if—8.009.00 (a) A is a subsidiary undertaking of the firm, or8.009.00 (b) A is a subsidiary undertaking of a parent undertaking of the firm.Additional permissions3.005.50 55S Duty of FCA or PRA to consider other permissions5.006.00 (1) “Additional Part 4A permission” —8.009.00 (a) in relation to either regulator, means a Part 4A permission which is in force in relation to an EEA firm or a Treaty firm, and8.009.00 (b) in relation to the FCA, also includes Part 4A permission which is in force in relation to a person authorised as a result of paragraph 1(1) of Schedule 5. 5.006.00 (2) If either regulator is considering whether, and if so how, to exercise its own-initiative variation power or its own-initiative requirement power in relation to an additional Part 4A permission, it must take into account—8.009.00 (a) the home state authorisation of the authorised person concerned,8.009.00 (b) any relevant directive, and8.009.00 (c) relevant provisions of the Treaty.Persons whose interests are protected3.005.50 55T Persons whose interests are protected4.50For the purpose of any provision of this Part which refers to the FCA’s operational objectives or the PRA’s objectives in relation to the exercise of a power in relation to a particular person, it does not matter whether there is a relationship between that person and the persons whose interests will be protected by the exercise of the power.Procedure3.005.50 55U Applications under this Part5.006.00 (1) An application for a Part 4A permission must—8.009.00 (a) contain a statement of the regulated activity or regulated activities which the applicant proposes to carry on and for which the applicant wishes to have permission, and